Did Sean Daniel McDevitt Cause You Investment Losses?
Sean Daniel McDevitt of San Juan, Puerto Rico submitted a Letter of Acceptance, Waiver, and Consent to the Financial Industry Regulatory Authority in which he was fined $10,000 and suspended from association with any FINRA member in all capacities for six months. The sanctions were based on findings that he engaged in private securities transactions in violation of NASD Rule 3040 and FINRA Rules 3280 and 2010. The suspension remains in effect from March 1, 2021, through August 31, 2021.
In November 2015, Sean Daniel McDevitt joined Woodrock Securities L.P. while registered as a General Securities Representative. The firm later filed a Uniform Termination Notice for Securities Industry Registration (Form U5) in December 2016, disclosing that he had been terminated due to alleged misconduct. According to FINRA’s findings, McDevitt allegedly engaged in private securities transactions when he solicited four investors to purchase promissory notes in the amount of $600,000. The findings state that McDevitt had signed the promissory notes on behalf of the company and had not disclosed to his firm that he was engaged in the private securities transactions. Although Sean Daniel McDevitt is not currently registered or associated with a FINRA member firm, he remains subject to FINRA’s jurisdiction.
FINRA Rule 3280, and its predecessor NASD Rule 3040, generally define a private securities transaction as any securities transaction outside the regular scope of an associated person’s employment with a member. FINRA Rule 3280(b) and NASD 3040(b) both state that “prior to participating in any private securities transaction, an associated person shall provide written notice to the member with which he is associated describing in detail the proposed transaction and the person’s proposed role therein and stating whether he has received or may receive selling compensation in connection with the transaction.” A violation of FINRA Rule 3280 or NASD Rule 3040 is also a violation of FINRA Rule 2010, which requires associated persons, in the conduct of their business, to observe high standards of commercial honor and just and equitable principles of trade.
Do You Need a Puerto Rico Selling Away Attorney?
Did your Puerto Rico stockbroker or investment advisor recommend an investment that turned out to be an investment that was never reviewed or approved by their stockbrokerage firm employer? The stockbrokers who stoop to that level are usually insolvent or uncollectible. And so, the investor’s only recourse is against the brokerage firm employer. But stockbrokerage firms always claim ignorance of the stockbroker’s activities and deny liability for the sale of unauthorized investments which they call Selling Away as if that was an absolute defense. Not so! You will definitely need an experienced attorney who knows the securities laws and how to hold the stockbrokerage firm responsible for their employees Selling Away under legal principles of actual authority, apparent authority, estoppel and failure to supervise. If your attorney knows where to look he/she can often find Red Flags of the alleged unauthorized sales that the firm did not look for, missed, or saw and just ignored.
Free Initial Consultation With Experienced Selling Away Attorneys Representing San Juan, Puerto Rico Residents in FINRA Arbitrations
At The Law Offices of Robert Wayne Pearce, P.A. we represent investors in all kinds of securities, commodities, and investment law disputes in FINRA, AAA and JAMS arbitration and mediation proceedings. Attorney Pearce and his staff represent investors throughout Puerto Rico, and across the United States on a CONTINGENCY FEE basis which means you pay nothing – NO FEES-NO COSTS – unless we put money in your pocket after receiving a settlement or FINRA arbitration award.
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For dedicated representation by Attorney Pearce with over 40 years of experience and success in all kinds of securities, commodities, and investment law disputes serving Puerto Rico citizens, contact the firm by phone at 561-338-0037, toll free at 800-732-2889 or via e-mail.